Is Exxon Mobil Corporation (XOM) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Energy sector peers in our coverage

In Line TTM fundamentals · sector averages from covered peers

XOM trades at 19.8× TTM earnings — roughly in line with its Energy sector average of 19.2×.

The Numbers

P/E (TTM)

19.8×

Sector avg: 19.2×

P/S (TTM)

1.7×

Sector avg: 1.9×

Market Cap

$570.27B

EPS (TTM): $6.88

Revenue (TTM)

$333.36B

Net income: $31.11B

Energy Peer Comparison

How XOM's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock	Price	P/E (TTM)	P/S (TTM)	Market Cap
XOM This page	$136.46	19.8×	1.7×	$570.27B
CVX Chevron Corporation	$168.12	23.6×	1.7×	$332.88B
COP ConocoPhillips	$103.57	14.6×	2.1×	$126.89B
SLB Schlumberger Limited	$45.71	19.5×	1.9×	$68.35B

Is the Multiple Justified?

July 6, 2026

Exxon Mobil's P/E of 19.9x is marginally above the energy sector average of 19.4x, reflecting its integrated business model and strong underlying operational performance. While reported Q1 2026 earnings were impacted by non-cash derivative timing effects and Middle East supply disruptions, adjusted earnings significantly beat expectations. The company demonstrated robust upstream production growth, particularly in Guyana and the Permian, and is actively returning substantial capital to shareholders through dividends and significant share repurchases, on track for $20 billion in 2026. Strategic investments in LNG projects and ongoing structural cost savings further support its valuation in a volatile, yet rebalancing, energy market.

Sources

Frequently Asked Questions

Is XOM overvalued or undervalued?

On trailing-twelve-month earnings, XOM trades at 19.8x versus a Energy sector average of 19.2x in our coverage — a 3% premium. Whether that's justified depends on growth, margins, and risk; see the context above.

What does the P/E ratio tell you?

Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.

Why compare against the sector average?

Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing XOM with its own Energy peers is more informative than comparing against the whole market.

Is a cheap stock automatically a good buy?

No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Energy names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Energy peers

COP SLB CVX